Consolidated Operating Income up 16% to a Record $1.1 Billion; GAAP
EPS of $0.46; Non-GAAP EPS up 15% to a Record $0.46

Dollars Loaded on Starbucks Cards Increase 18% to a Record $1.9
Billion

SEATTLE--(BUSINESS WIRE)--Jan. 21, 2016--
Starbucks Corporation (NASDAQ: SBUX) today reported financial results
for its 13-week fiscal first quarter ended December 27, 2015. Fiscal
2016 and fiscal 2015 GAAP results include items which are excluded from
non-GAAP results. Please refer to the reconciliation of GAAP measures to
non-GAAP measures at the end of this release for more information.

Company served over 23 million more customer occasions from its global
comp store base - 18 million in the U.S. - in Q1 over the prior year

Record $1.9 billion loaded on Starbucks Cards in the U.S. and Canada;
1 in 6 American adults received a Starbucks Card over Holiday, up from
1 in 7 in Q1 FY15

Membership in the company's My Starbucks Rewards loyalty program
increased 23%; the company now has more than 11 million active members
in the U.S.

“Starbucks record Q1 2016 financial and operating results, highlighted
by comp sales increases of 9% in the U.S., 8% globally, another 4%
increase in global traffic - and record performance from our Channel
Development segment - underscore the accelerating strength and relevance
of the Starbucks brand around the world,” said Howard Schultz, Starbucks
chairman and ceo. “Successful retail, CPG, digital, mobile, loyalty,
card and investment strategies are combining to accelerate our revenue
growth and drive significant margin expansion and EPS leverage.”

“We’ve entered fiscal 2016 with another record-breaking quarter and a
continuation of the accelerating momentum we saw in our business
throughout 2015,” said Scott Maw, Starbucks cfo. “The investments we are
making in our people and our business are driving record, industry
leading operating and financial performance and consistently strong comp
growth, and are both paying off today and setting us up for continued
strong performance into the future.”

First Quarter Fiscal 2016 Summary

Quarter Ended Dec 27, 2015

Comparable Store Sales(1)

Sales Growth

Change in Transactions

Change in Ticket

Consolidated(2)

8%

4%

4%

Americas

9%

4%

5%

CAP(2)

5%

4%

2%

EMEA

1%

1%

0%

(1) Includes only Starbucks company-operated stores open
13 months or longer.

(2) Beginning in December of fiscal 2016, comparable
store sales include the results of the 1,009 company-operated stores
acquired as part of the acquisition of Starbucks Japan in the first
quarter of fiscal 2015.

Operating Results

Quarter Ended

($ in millions, except per share amounts)

Dec 27, 2015

Dec 28, 2014

Change

Net New Stores

528

512

16

Revenues

$5,373.5

$4,803.2

12%

Operating Income

$1,058.0

$915.5

16%

Operating Margin

19.7%

19.1%

60 bps

EPS

$0.46

$0.65

(29)%

Consolidated net revenues were $5.4 billion in Q1 FY16, an increase of
12% over Q1 FY15. The increase was primarily driven by an 8% increase in
global comparable store sales and the opening of 1,693 net new stores
over the past 12 months.

Consolidated operating income grew 16% to $1,058.0 million in Q1 FY16,
up from $915.5 million in Q1 FY15. Consolidated operating margin
expanded 60 basis points to 19.7%. The increase was primarily due to
sales leverage and was partially offset by investments in our partners
(employees) and digital platforms.

Q1 Americas Segment Results

Quarter Ended

($ in millions)

Dec 27, 2015

Dec 28, 2014

Change

Net New Stores

171

210

(39)

Revenues

$3,726.2

$3,366.9

11%

Operating Income

$934.6

$817.5

14%

Operating Margin

25.1%

24.3%

80 bps

Net revenues for the Americas segment were $3.7 billion in Q1 FY16, an
increase of 11% over Q1 FY15. The increase was driven by a 9% increase
in comparable store sales and incremental revenues from 573 net new
store openings over the past 12 months.

Operating income of $934.6 million in Q1 FY16 grew 14% versus $817.5
million in Q1 FY15. Operating margin of 25.1% expanded 80 basis points
due to sales leverage and savings in cost of sales, primarily dairy, and
was partially offset by investments in our partners (employees) and
digital platforms.

Q1 China/Asia Pacific Segment Results

Quarter Ended

($ in millions)

Dec 27, 2015

Dec 28, 2014

Change

Net New Stores

281

234

47

Revenues

$653.6

$495.8

32%

Operating Income

$127.1

$108.3

17%

Operating Margin

19.4%

21.8%

(240) bps

Net revenues for the China/Asia Pacific segment grew 32% over Q1 FY15 to
$653.6 million in Q1 FY16. The increase was primarily driven by
incremental revenues from the acquisition of Starbucks Japan during Q1
FY15. Also contributing were incremental revenues from 885 net new store
openings over the past 12 months and a 5% increase in comparable store
sales.

Operating income grew 17% over Q1 FY15 to $127.1 million in Q1 FY16.
Operating margin declined 240 basis points to 19.4% primarily due to the
impact of our ownership change in Starbucks Japan, which drove a 330
basis point decline. The remaining 90 basis point expansion was
primarily due to sales leverage and higher income from our joint venture
operations, and was partially offset by increased store operating
expenses related to higher compensation and benefits.

Q1 EMEA Segment Results

Quarter Ended

($ in millions)

Dec 27, 2015

Dec 28, 2014

Change

Net New Stores

79

58

21

Revenues

$313.0

$333.3

(6)%

Operating Income

$48.1

$50.0

(4)%

Operating Margin

15.4%

15.0%

40 bps

Net revenues for the EMEA segment were $313.0 million in Q1 FY16, a 6%
decrease versus Q1 FY15. The decrease was primarily due to unfavorable
foreign currency translation and the shift in the portfolio towards more
licensed stores. Partially offsetting the decrease were incremental
revenues from the opening of 263 net new licensed stores over the past
12 months.

Operating income decreased 4% to $48.1 million in Q1 FY16, down from $50
million in Q1 FY15. Operating margin expanded 40 basis points to 15.4%,
primarily driven by gains on the sales of certain store assets in the
region which were partially offset by higher cost of sales in our
licensed stores operations and lower sales from our company-operated
stores business.

Q1 Channel Development Segment Results

Quarter Ended

($ in millions)

Dec 27, 2015

Dec 28, 2014

Change

Revenues

$512.1

$442.6

16%

Operating Income

$193.3

$157.5

23%

Operating Margin

37.7%

35.6%

210 bps

Net revenues for the Channel Development segment grew 16% over Q1 FY15
to $512.1 million in Q1 FY16, primarily driven by increased sales of
premium single-serve products. Also contributing to the increase were
higher foodservice and packaged coffee sales.

Operating income of $193.3 million in Q1 FY16 increased 23% compared to
Q1 FY15. Operating margin increased 210 basis points to 37.7%, primarily
driven by higher income from our North American Coffee Partnership and
leverage on cost of sales.

Q1 All Other Segments Results

Quarter Ended

($ in millions)

Dec 27, 2015

Dec 28, 2014

Change

Net New Stores

(3)

10

(13)

Revenues

$168.6

$164.6

2%

Operating Income

$5.9

$10.2

(42)%

Fiscal 2016 Targets

Starbucks fiscal year 2016 will include an extra week in the fourth
quarter, as fiscal 2016 is a 53-week year for the company.

The company reiterates the following FY16 targets, unless otherwise
noted. FY16 targets are based on actual FY15 non-GAAP results and
projected FY16 non-GAAP results as noted. Projected FY16 non-GAAP
adjustments relate to the acquisition of Starbucks Japan; please refer
to the reconciliation of GAAP measures to non-GAAP measures at the end
of this release.

Approximately 1,800 net new store openings in the fiscal year:

Americas: approximately 700, half licensed

China/Asia Pacific: approximately 900, two-thirds licensed

EMEA: approximately 200, primarily licensed

Full year consolidated revenue growth of 10%+ on a 52 week basis, the
53rd week expected to add approximately 2%

China/Asia Pacific: expected to be flat to down slightly versus
prior year

EMEA: expected to approach 15%

Channel Development: expect moderate improvement versus prior year

Expecting a consolidated tax rate between 34% and 35%

Full year FY16 earnings per share, including the 53rd week in Q4 FY16:

GAAP EPS in the range of $1.84 to $1.86

Non-GAAP EPS in the range of $1.87 to $1.89

Introduced - Q2 FY16 earnings per share:

GAAP EPS in the range of $0.37 to $0.38

Non-GAAP EPS in the range of $0.38 to $0.39

Capital expenditures of approximately $1.4 billion

Company Updates

The company elected Mary Dillon, CEO of Ulta Beauty, to its Board of
Directors on January 4; she will serve on the Board’s Compensation and
Management Development Committee.

Starbucks and long-time strategic partner Hong Kong Maxim’s Group
together opened the first Starbucks store in Cambodia in Q1; the
company also opened its first two locations in Kazakhstan in the
quarter, in collaboration with strategic licensing partner Alshaya.
The company now operates in 70 countries worldwide.

In December, the company launched Starbucks Delivery by Postmates, a
pilot program in collaboration with leading on-demand delivery service
Postmates, where customers can have Starbucks food or beverages
delivered to them within designated areas in Seattle.

Starbucks extended its successful Mobile Order & Pay program to
Vancouver, B.C. in January, allowing customers to pre-order their
favorite beverages and food in over 130 locations in the city.

The company announced a number of new market-leading initiatives in
its China market - in addition to existing pay and benefits programs -
including a monthly housing allowance subsidy and the Career Coffee
Break (sabbatical) benefit.

Starbucks hosted the second “Opportunity Fair and Forum” in the
quarter, together with the 100,000 Opportunities Initiative in Phoenix
where more than 500 job offers were given to “opportunity youth” by
the 25 companies in attendance. In addition, Starbucks Canada
committed 10 percent of its store hires to opportunity youth and will
further create 600 work placements for Non-Job-Ready Youth over the
next three years.

The company announced an enhancement to its Starbucks College
Achievement Plan whereby partners who are current or former members of
the U.S. Armed Forces may extend 100 percent tuition reimbursement to
a spouse or child through the program.

The company repurchased 4.5 million shares of common stock in Q1 FY16;
48 million shares remain available for purchase under current
authorizations.

The Board of Directors declared a cash dividend of $0.20 per share,
payable on February 19, 2016 to shareholders of record as of February
4, 2016.

Conference Call

Starbucks will hold a conference call today at 2:00 p.m. Pacific Time,
which will be hosted by Howard Schultz, chairman and ceo; Kevin Johnson,
president and coo; Scott Maw, cfo; and Michael Conway, president, Global
Channel Development. The call will be webcast and can be accessed at http://investor.starbucks.com.
A replay of the webcast will be available until end of day Saturday,
February 20, 2016.

About Starbucks

Since 1971, Starbucks Coffee Company has been committed to ethically
sourcing and roasting high-quality arabica coffee. Today, with
stores around the globe, the company is the premier roaster and retailer
of specialty coffee in the world. Through our unwavering commitment to
excellence and our guiding principles, we bring the unique Starbucks
Experience to life for every customer through every cup. To share in
the experience, please visit us in our stores or online at news.starbucks.com
or www.starbucks.com.

Forward-Looking Statements

This release contains forward-looking statements relating to certain
company initiatives, strategies and plans, as well as trends in or
expectations regarding our diversified business model, the strength,
momentum, health and potential of our business, operations and brand,
our innovation, growth and growth opportunities and related investments,
shareholder value, earnings per share, revenues, operating margins,
profitability, capital expenditures, tax rate, anticipated costs related
to the integration of Starbucks Japan, comparable store sales and net
new stores. These forward-looking statements are based on currently
available operating, financial and competitive information and are
subject to a number of significant risks and uncertainties. Actual
future results may differ materially depending on a variety of factors
including, but not limited to, fluctuations in U.S. and international
economies and currencies, our ability to preserve, grow and leverage our
brands, potential negative effects of material breaches of our
information technology systems to the extent we experience a material
breach, potential negative effects of incidents involving food-borne
illnesses, food tampering, food contamination or mislabeling, material
failures of our information technology systems, costs associated with,
and the successful execution of, the company’s initiatives and plans,
including the integration of Starbucks Japan, the acceptance of the
company’s products by our customers, the impact of competition, coffee,
dairy and other raw materials prices and availability, the effect of
legal proceedings, and other risks detailed in the company filings with
the Securities and Exchange Commission, including the “Risk Factors”
section of Starbucks Annual Report on Form 10-K for the fiscal year
ended September 27, 2015. The company assumes no obligation to update
any of these forward-looking statements.

STARBUCKS CORPORATION

CONSOLIDATED STATEMENTS OF EARNINGS

(unaudited, in millions, except per share data)

Quarter Ended

Quarter Ended

Dec 27,

2015

Dec 28,

2014

%

Change

Dec 27,

2015

Dec 28,

2014

As a % of total

net revenues

Net revenues:

Company-operated stores

$

4,210.6

$

3,772.8

11.6

%

78.4

%

78.5

%

Licensed stores

540.6

483.9

11.7

10.1

10.1

CPG, foodservice and other

622.3

546.5

13.9

11.6

11.4

Total net revenues

5,373.5

4,803.2

11.9

100.0

100.0

Cost of sales including occupancy costs

2,186.2

1,991.2

9.8

40.7

41.5

Store operating expenses

1,506.2

1,315.5

14.5

28.0

27.4

Other operating expenses

146.2

129.4

13.0

2.7

2.7

Depreciation and amortization expenses

235.5

206.0

14.3

4.4

4.3

General and administrative expenses

305.5

298.4

2.4

5.7

6.2

Total operating expenses

4,379.6

3,940.5

11.1

81.5

82.0

Income from equity investees

64.1

52.8

21.4

1.2

1.1

Operating income

1,058.0

915.5

15.6

19.7

19.1

Gain resulting from acquisition of joint venture

—

390.6

(100.0

)

—

8.1

Interest income and other, net

8.1

9.7

(16.5

)

0.2

0.2

Interest expense

(16.5

)

(16.3

)

1.2

(0.3

)

(0.3

)

Earnings before income taxes

1,049.6

1,299.5

(19.2

)

19.5

27.1

Income taxes

361.9

315.0

14.9

6.7

6.6

Net earnings including noncontrolling interests

687.7

984.5

(30.1

)

12.8

20.5

Net earnings/(loss) attributable to noncontrolling interests

0.1

1.4

(92.9

)

—

—

Net earnings attributable to Starbucks

$

687.6

$

983.1

(30.1

)

12.8

%

20.5

%

Net earnings per common share - diluted

$

0.46

$

0.65

(29.2

)%

Weighted avg. shares outstanding - diluted

1,503.3

1,516.8

Cash dividends declared per share

$

0.20

$

0.16

Supplemental Ratios:

Store operating expenses as a percentage of company-operated store
revenues

35.8

%

34.9

%

Effective tax rate including noncontrolling interests

34.5

%

24.2

%

Segment Results (in millions)

Americas

Dec 27,

2015

Dec 28,

2014

%

Change

Dec 27,

2015

Dec 28,

2014

Quarter Ended

As a % of Americas

total net revenues

Net revenues:

Company-operated stores

$

3,330.7

$

3,010.6

10.6

%

89.4

%

89.4

%

Licensed stores

387.6

346.2

12.0

10.4

10.3

Foodservice and other

7.9

10.1

(21.8

)

0.2

0.3

Total net revenues

3,726.2

3,366.9

10.7

100.0

100.0

Cost of sales including occupancy costs

1,346.9

1,261.0

6.8

36.1

37.5

Store operating expenses

1,226.8

1,084.4

13.1

32.9

32.2

Other operating expenses

32.6

30.2

7.9

0.9

0.9

Depreciation and amortization expenses

140.8

127.1

10.8

3.8

3.8

General and administrative expenses

44.5

46.7

(4.7

)

1.2

1.4

Total operating expenses

2,791.6

2,549.4

9.5

74.9

75.7

Operating income

$

934.6

$

817.5

14.3

%

25.1

%

24.3

%

Supplemental Ratios:

Store operating expenses as a percentage of company-operated store
revenues

36.8

%

36.0

%

China/Asia Pacific (CAP)

Dec 27,

2015

Dec 28,

2014

%

Change

Dec 27,

2015

Dec 28,

2014

Quarter Ended

As a % of CAP

total net revenues

Net revenues:

Company-operated stores

$

580.1

$

421.8

37.5

%

88.8

%

85.1

%

Licensed stores

72.2

73.2

(1.4

)

11.0

14.8

Foodservice and other

1.3

0.8

62.5

0.2

0.2

Total net revenues

653.6

495.8

31.8

100.0

100.0

Cost of sales including occupancy costs

295.0

233.6

26.3

45.1

47.1

Store operating expenses

175.3

117.7

48.9

26.8

23.7

Other operating expenses

14.8

15.1

(2.0

)

2.3

3.0

Depreciation and amortization expenses

42.1

28.1

49.8

6.4

5.7

General and administrative expenses

30.5

25.7

18.7

4.7

5.2

Total operating expenses

557.7

420.2

32.7

85.3

84.8

Income from equity investees

31.2

32.7

(4.6

)

4.8

6.6

Operating income

$

127.1

$

108.3

17.4

%

19.4

%

21.8

%

Supplemental Ratios:

Store operating expenses as a percentage of company-operated store
revenues

30.2

%

27.9

%

EMEA

Dec 27,

2015

Dec 28,

2014

%

Change

Dec 27,

2015

Dec 28,

2014

Quarter Ended

As a % of EMEA

total net revenues

Net revenues:

Company-operated stores

$

218.9

$

257.6

(15.0

)%

69.9

%

77.3

%

Licensed stores

79.7

63.3

25.9

25.5

19.0

Foodservice

14.4

12.4

16.1

4.6

3.7

Total net revenues

313.0

333.3

(6.1

)

100.0

100.0

Cost of sales including occupancy costs

151.4

156.2

(3.1

)

48.4

46.9

Store operating expenses

73.9

85.8

(13.9

)

23.6

25.7

Other operating expenses

14.8

13.7

8.0

4.7

4.1

Depreciation and amortization expenses

11.5

13.8

(16.7

)

3.7

4.1

General and administrative expenses

14.5

14.0

3.6

4.6

4.2

Total operating expenses

266.1

283.5

(6.1

)

85.0

85.1

Income from equity investees

1.2

0.2

500.0

0.4

0.1

Operating income

$

48.1

$

50.0

(3.8

)%

15.4

%

15.0

%

Supplemental Ratios:

Store operating expenses as a percentage of company-operated store
revenues

33.8

%

33.3

%

Channel Development

Dec 27, 2015

Dec 28, 2014

%

Change

Dec 27, 2015

Dec 28, 2014

Quarter Ended

As a % of

Channel Development

total net revenues

Net revenues:

CPG

$

399.2

$

343.8

16.1

%

78.0

%

77.7

%

Foodservice

112.9

98.8

14.3

22.0

22.3

Total net revenues

512.1

442.6

15.7

100.0

100.0

Cost of sales

285.4

249.3

14.5

55.7

56.3

Other operating expenses

60.3

51.0

18.2

11.8

11.5

Depreciation and amortization expenses

0.7

0.6

16.7

0.1

0.1

General and administrative expenses

4.1

4.1

—

0.8

0.9

Total operating expenses

350.5

305.0

14.9

68.4

68.9

Income from equity investees

31.7

19.9

59.3

6.2

4.5

Operating income

$

193.3

$

157.5

22.7

%

37.7

%

35.6

%

All Other Segments

Dec 27,

2015

Dec 28,

2014

%

Change

Quarter Ended

Net revenues:

Company-operated stores

$

80.9

$

82.8

(2.3

)%

Licensed stores

1.1

1.2

(8.3

)

CPG, foodservice and other

86.6

80.6

7.4

Total net revenues

168.6

164.6

2.4

Cost of sales including occupancy costs

95.3

93.3

2.1

Store operating expenses

30.2

27.6

9.4

Other operating expenses

23.7

19.5

21.5

Depreciation and amortization expenses

3.6

4.0

(10.0

)

General and administrative expenses

9.9

10.0

(1.0

)

Total operating expenses

162.7

154.4

5.4

Operating income

$

5.9

$

10.2

(42.2

)%

Supplemental Information

The following supplemental information is provided for historical and
comparative purposes.

U.S. Supplemental Data

Quarter Ended

($ in millions)

Dec 27, 2015

Dec 28, 2014

Change

Revenues

$3,410.8

$3,022.0

13%

Comparable Store Sales Growth(1)

9%

5%

Change in Transactions

4%

2%

Change in Ticket

5%

4%

(1)Includes only Starbucks company-operated
stores open 13 months or longer.

Store Data

Net stores opened (closed) and

transferred during the period

Quarter Ended

Stores open as of

Dec 27,

2015

Dec 28,

2014

Dec 27,

2015

Dec 28,

2014

Americas:

Company-operated stores

81

67

8,752

8,462

Licensed stores

90

143

6,222

5,939

Total Americas

171

210

14,974

14,401

China/Asia Pacific(1):

Company-operated stores

90

1,071

2,542

2,203

Licensed stores

191

(837

)

3,201

2,655

Total China/Asia Pacific

281

234

5,743

4,858

EMEA:

Company-operated stores

(39

)

(7

)

698

810

Licensed stores

118

65

1,743

1,388

Total EMEA

79

58

2,441

2,198

All Other Segments:

Company-operated stores

(1

)

9

374

378

Licensed stores

(2

)

1

39

43

Total All Other Segments

(3

)

10

413

421

Total Company

528

512

23,571

21,878

(1)China/Asia Pacific store data includes the
transfer of 1,009 Japan stores from licensed stores to
company-operated as a result of the acquisition of Starbucks Japan
in the first quarter of fiscal 2015.

Non-GAAP Disclosure

In addition to the GAAP results provided in this release, the company
provides consolidated non-GAAP operating income, consolidated non-GAAP
operating margin and consolidated non-GAAP earnings per share ("non-GAAP
EPS") for Q1 fiscal 2016 and fiscal 2015; China/Asia Pacific (“CAP”)
segment non-GAAP operating income and non-GAAP operating margin for Q1
fiscal 2016 and fiscal 2015; and consolidated non-GAAP EPS for Q2 and
full year fiscal 2015, as well as projected consolidated non-GAAP EPS
for Q2 and full year fiscal 2016. These non-GAAP financial measures are
not in accordance with, or alternatives for, generally accepted
accounting principles in the United States. The GAAP measures most
directly comparable to non-GAAP operating income, non-GAAP operating
margin, and non-GAAP EPS are operating income, operating margin, and
diluted net earnings per share, respectively. The company’s management
believes that providing these non-GAAP financial measures better enables
investors to understand and evaluate the company’s historical and
prospective operating performance.

The consolidated Q1 fiscal 2016 as well as the consolidated Q1 and Q2
fiscal 2015 non-GAAP financial measures exclude certain Starbucks Japan
acquisition-related items, specifically amortization expense from
acquired intangible assets and transaction and integration costs. The Q1
fiscal 2016 and fiscal 2015 CAP segment non-GAAP financial measures
exclude the amortization expense from acquired intangible assets related
to the acquisition of Starbucks Japan. The Q1 fiscal 2016 CAP segment
non-GAAP financial measures also exclude integration costs, including
incremental information technology and compensation-related costs
associated with the acquisition. The consolidated Q1 and full year
fiscal 2015 non-GAAP EPS financial measures exclude the Starbucks Japan
acquisition-related items as well as a gain resulting from a fair value
adjustment of Starbucks preexisting 39.5% ownership interest in
Starbucks Japan prior to the acquisition. The consolidated full year
fiscal 2015 non-GAAP EPS financial measure also excludes losses and
costs related to the redemption of the company's $550 million of 6.250%
2017 Senior Notes and an incremental tax benefit related to a U.S.
manufacturing deduction. Losses and costs related to the redemption are
included as debt extinguishment-related items. Management excludes the
acquisition-related transaction costs described above because they
believe these items do not reflect expected future expenses and do not
contribute to a meaningful evaluation of the company’s future operating
performance or comparisons to the company’s past operating performance.
In addition, management believes it is useful to exclude the integration
costs and the amortization of the acquired intangible assets when
evaluating performance because they are not representative of our core
business operations. Although these items will affect earnings per share
beyond the current fiscal year, the majority of these costs will be
recognized over a finite period of time. More specifically, integration
costs are expected to be concentrated in the first several years
post-acquisition. Additionally, the amounts of the acquired intangible
assets are specific to the transaction and the related amortization was
fixed at the time of acquisition and generally cannot subsequently be
changed or influenced by management in a future period. Management
excludes the fair value gain, debt extinguishment-related items and the
incremental tax benefit because they believe these items do not reflect
future gains, losses, costs or tax benefits and do not contribute to a
meaningful evaluation of the company’s fiscal 2015 operating performance
or comparisons of the company’s fiscal 2015 operating performance to the
company’s past or future operating performance.

The projected consolidated non-GAAP EPS for Q2 and full year fiscal 2016
financial measures exclude certain Starbucks Japan acquisition-related
items comprised of projected amortization expense from acquired
intangible assets and transaction and integration costs. Management is
excluding these items from our projected non-GAAP measures for the same
reasons described above.

These non-GAAP financial measures may have limitations as analytical
tools, and these measures should not be considered in isolation or as a
substitute for analysis of the company’s results as reported under GAAP.
Other companies may calculate these non-GAAP financial measures
differently than the company does, limiting the usefulness of those
measures for comparative purposes.

STARBUCKS CORPORATION

RECONCILIATION OF SELECTED GAAP MEASURES TO NON-GAAP MEASURES

(unaudited)

Quarter Ended

Dec 27,

2015

Dec 28,

2014

Change

Consolidated

Operating income, as reported (GAAP)

$

1,058.0

$

915.5

15.6

%

Starbucks Japan acquisition-related items - other(1)

12.3

19.3

Non-GAAP operating income

$

1,070.3

$

934.8

14.5

%

Operating margin, as reported (GAAP)

19.7

%

19.1

%

60

bps

Starbucks Japan acquisition-related items - other(1)

0.2

0.4

Non-GAAP operating margin

19.9

%

19.5

%

40

bps

Diluted net earnings per share, as reported (GAAP)

$

0.46

$

0.65

(29.2

)%

Starbucks Japan acquisition-related items - gain(2)

—

(0.26

)

Starbucks Japan acquisition-related items - other(1)

0.01

0.01

Non-GAAP net earnings per share

$

0.46

$

0.40

15.0

%

China/Asia Pacific (CAP)

Operating income, as reported (GAAP)

$

127.1

$

108.3

17.4

%

Starbucks Japan acquisition-related items(3)

12.1

7.7

Non-GAAP operating income

$

139.2

$

116.0

20.0

%

Operating margin, as reported (GAAP)

19.4

%

21.8

%

(240

) bps

Starbucks Japan acquisition-related items(3)

1.9

1.6

Non-GAAP operating margin

21.3

%

23.4

%

(210

) bps

(1) Includes ongoing amortization expense of acquired intangible
assets and transaction and integration costs, such as incremental
information technology ("IT") and compensation-related costs
associated with the acquisition.

(3) Includes ongoing amortization expense of acquired intangible
assets associated with the acquisition; the first quarter of FY16
also includes post-acquisition integration costs, including
incremental IT and compensation-related costs.

Quarter Ended

Mar 27,

2016

Mar 29,

2015

Consolidated

(Projected)

(As Reported)

Change

Diluted net earnings per share (GAAP)

$0.37 - $0.38

$

0.33

12% - 15%

Starbucks Japan acquisition-related items - other(1)

0.01

0.01

Non-GAAP net earnings per share

$0.38 - $0.39

$

0.33

15% - 18%

Year Ended

Oct 2,

2016

Sep 27,

2015

Consolidated

(Projected

53-weeks)

(As Reported

52-weeks)

Change

Diluted net earnings per share (GAAP)

$1.84 - $1.86

$

1.82

1% - 2%

Starbucks Japan acquisition-related items - gain(2)

—

(0.26

)

Starbucks Japan acquisition-related items - other(1)

0.03

0.03

Debt extinguishment-related items(3)

—

0.03

Tax benefit from domestic manufacturing deduction(4)

—

(0.04

)

Non-GAAP net earnings per share

$1.87 - $1.89

$

1.58

18% - 20%

(1) Includes ongoing amortization expense of acquired intangible
assets and transaction and integration costs, such as incremental
information technology ("IT") and compensation-related costs
associated with the acquisition.

(3) Represents the loss on extinguishment of debt ($61.1M), which
is comprised of the cost of the optional redemption provision,
unamortized debt issuance costs, and unamortized discount
associated with the $550 million of 6.250% 2017 Senior Notes
redeemed in Q4 FY15, as well as the related unamortized interest
rate hedge loss ($2.0M), which was recorded in interest expense.

(4) Represents the incremental benefit related to additional
domestic manufacturing deductions to be claimed in our U.S.
consolidated tax returns for FY10 through FY14 and through Q3 FY15.